Construction Employment Up Or Steady In 1/3 Of Metro Areas Between October 2009 & 2010 Thanks To Stimulus, Other Projects

Published: December 2, 2010

Phoenix, Ariz. and Hanford-Corcoran, Calif. Top List of Metro Areas Adding Jobs while Chicago and Napa, Calif. Lose Most Jobs for the Year

Construction employment either increased or remained steady in one-third - 113 of 337 metropolitan areas - between October 2009 and October 2010 according to a new analysis of federal employment data released today by the Associated General Contractors of America. Association officials said construction job gains are becoming more widespread thanks in large part to an increase in power, stimulus and other publicly-funded construction projects.

"It looks like the stimulus, military base realignment and power projects have put a halt to some of the dramatic construction job losses many metro areas have been experiencing," said Ken Simonson, the association's chief economist, referring to construction spending figures released yesterday. "But even as construction employment has stabilized in some areas, the fact remains that construction job losses are still far too numerous and widespread."

Association officials said that even though private sector demand for construction services remains weak, there's some room for optimism. They noted that state and local tax receipts appear to be stabilizing while demand for power projects surged between September and October. They added that the recently released proposal from the Deficit Commission calling for an increase in highway, bridge and transit funding underscored some politicians' commitment to upgrading the country's aging infrastructure.

"We may not be able to see the light at the end of the tunnel, but we know it is getting closer," said Stephen Sandherr, the association's chief executive officer. "Washington can help by putting in place consistent tax and investment policies that encourage greater private sector growth and promote stability within the hard-hit construction industry."